Impact of FDI on economic growth from the sustainable development perspective: A case study from the assessment in the middle of Vietnam

Abstract

This study aims to investigate the impact of foreign direct investment (FDI) on economic growth from the sustainable development perspective with a case study of provinces in the middle of Central Vietnam. The effect is evaluated through five different aspects, namely: economics, society, environment, institution and labor. This study used the method of five-level Linkert scale and descriptive statistics to analyse the data from the empirical survey of 194 FDI enterprises, experts and managers who are working for research institutions, local organizations in the middle of Vietnam. The results showed that attracting FDI is necessary for economic growth. Under the effect of FDI, economic growth, social development, institutional improvement and labor quality have significantly improved whereas the effect of FDI on the environmental aspect is still unclear. Moreover, from the evidence, the authors proposed some policy implications for attracting FDI to contribute to sustainable economic growth in the provinces in the middle of Vietnam.